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A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

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Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#161

I worked at Coinbase until very recently and can confirm this is Coinbase They paid upfront for 3 years of usage, and yes they were burning > $20m/year on datadog

So you’re saying it’s $65 million over three years? The headline seems misleading, like it’s for a single month.

Headline is slightly misleading

Earnings call said it was an upfront cost

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#163
post #103

OpenTelemetry is going to be an existential threat to DataDog and other companies that effectively rely on vendor lock-in to exploit customers. Not sure how companies rationalize these types of services at scale when there are so many open source options to run for a fraction of the cost. You could hire 100+ engineers and still save money compared to a 65M bill https://news.ycombinator.com/item?id=34540419

OpenTelemetry (or OTel) is in no way an existential threat to DataDog. Primarily because OTel is simply the substrate/protocol by which data is collected from your apps/systems. DD does _a lot_ more than what OTel provides (RUM, SIEM, synthetics, on-call, dashboarding, anomaly detection, and much much more). If anything it's an existential threat to the more legacy vendors that aren't equipped to provide an OTel inge…

So your claim is that Datadogs pricing is ridiculous and that Otel allows you to not be locked in, but somehow Otel isn't a thread to Datadog? I don't follow.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#164

OpenTelemetry is going to be an existential threat to DataDog and other companies that effectively rely on vendor lock-in to exploit customers. Not sure how companies rationalize these types of services at scale when there are so many open source options to run for a fraction of the cost. You could hire 100+ engineers and still save money compared to a 65M bill https://news.ycombinator.com/item?id=34540419

I’ve seen an attempted move from DD to OT and it was a nightmare of undocumented features and little compounded issues. Tracing was non functional. It doesn’t seem mature enough yet.

Apparently OT is a threat to DD to the point of them asking contributors to not add support for their agents… https://github.com/open-telemetry/opentelemetry-collector-co...

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#165

Damn. Why not self-host something on that scale?!

They did build a self hosted alternative based on grafana, Loki, Prometheus Had a whole team of 10+ engineers working on it for 2 quarters, then scrapped it because it performed terribly The only thing that came of it was negotiation leverage with datadog ("give us X% off or we go self hosted")

What kind of scale of logs are we talking here? The company I work for run a self-hosted Grafana LGTM stack ingesting about 1TB of logs per day, it’s pretty snappy and works well enough, and only costs a few thousand dollars per month in GKE costs for the entire observability stack.

How much logging are we talking here?

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#166

Earlier quoted context omitted.

I’ve seen an attempted move from DD to OT and it was a nightmare of undocumented features and little compounded issues. Tracing was non functional. It doesn’t seem mature enough yet.

Were you watching me? Because that's what happened. I am a user of New Relic. Not because I'm happy. But because OpenTelemetry doesn't come close to the same features. Fortunately, at least OT is about 10x harder to set up with worse documentation. Wait a minute...

yup at my last company CTO wanted to switch away from New Relic to save money for Open Telemetry and I can tell you we wasted months of work because OpenTelemetry is dogshit.

New Relic is really really good too, so it was even more painful.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#167

Earlier quoted context omitted.

So you’re saying it’s $65 million over three years? The headline seems misleading, like it’s for a single month.

yes but 20 million dollars a year. 20 fucking million getting splunk with 1pb a month ingest isnt that expensive.

They'll probably throw in SignalFX for free if you ask them nicely.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#168

Having never heard of datadog, Wikipedia’s summary is: > Datadog is an observability service for cloud-scale applications, providing monitoring of servers, databases, tools, and services, through a SaaS-based data analytics platform. So it checks if your servers have crashed or slowed down with a nice dashboard? Any better summaries or descriptions of what it does and how coinbase would have used it?

[deleted]

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#169

(Disclaimer: I work at Chronosphere) Our company helps avoid these kinds of observability bills and issues like scaling for fast-growing cloud deployments. Generally speaking, many vendors let you fall into the cardinality trap b/c they have an economic incentive to let you do so. One of our biggest selling points is that we provide an observability control plane that helps drill down into wasted queries, shows how m…

None of this should be even remotely necessary. It’s like being frugal with table salt.

“We’ll show you how to make sure you don’t have even one crystal fall off the plate.”

My personal pet peeve is Azure Application Insights which uses Log Analytics under the hood… at a rate of $2.75 per ingested GB of logs stored for one month. That’s highway robbery.

Let that sink in: They charge $2,800 to store a TB of text that takes a few hundred dollars of overpriced cloud disk and maybe $10 of CPU time for the actual processing. That’s the cost of a serviceable used car or a brand new gaming PC!

But wait! There’s more.

In reality that 1 TB is column compressed down to maybe 100 MB, making it about $30K charged per terabyte stored on disk.

It doesn’t stop there! Thanks to misaligned incentives, the ingested data format is fantastically inefficient JSON that re-sends static values for every metric sample collected. Why would anyone ever bother to optimise their only revenue?!

They won’t.

The reality is that a numeric metric collected once a second (not minute!) is just 21 MB if stored as a simple array. Most metrics are highly compressible, and that would easily pack to 100 KB per metric per month.

A typical Windows server has about 15,000 performance metrics. We could be collecting these once a second and use a grand total of… 1.5 GB per month. That’s every metric for every process, every device, every error counter, everything.

Modern server monitoring is inefficient and overpriced by 5 orders of magnitude. It’s that simple.

That fact that your company can exist at all is a testament to that.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#170

Earlier quoted context omitted.

Were you watching me? Because that's what happened. I am a user of New Relic. Not because I'm happy. But because OpenTelemetry doesn't come close to the same features. Fortunately, at least OT is about 10x harder to set up with worse documentation. Wait a minute...

yup at my last company CTO wanted to switch away from New Relic to save money for Open Telemetry and I can tell you we wasted months of work because OpenTelemetry is dogshit. New Relic is really really good too, so it was even more painful.

Yeah, New Relic is just an excellent product. No way around it.
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